Raise Calculator

See how a raise impacts your paycheck, annual income, and lifetime earnings.

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Understanding Pay Raises

A pay raise can come as a percentage increase or a fixed dollar amount. Understanding the true impact helps you negotiate effectively and plan your finances.

Types of Raises

  • Merit Raise: Based on performance, typically 2-5% annually
  • Cost of Living Adjustment (COLA): Matches inflation, usually 2-3%
  • Promotion Raise: For new responsibilities, often 10-20%
  • Market Adjustment: To match competitive salaries

Compound Effect of Raises

Raises compound over time. A 5% raise this year means your 5% raise next year is calculated on a higher base. Over a 20-year career, these compounds significantly impact your total earnings.

When to Ask for a Raise

  • After completing a major project or achieving significant results
  • During annual performance reviews
  • When taking on additional responsibilities
  • When market rates for your role have increased
  • After 12-18 months without a salary adjustment

Average Raise Statistics

According to industry data, the average annual raise is typically 3-5% for satisfactory performance. High performers may receive 5-10% or more. Promotions often come with 10-15% increases.